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(e) Hazard Insurance. The mortgaged property is insured by a fire andextended perils insurance policy, issued by a qualified insurer, and such other hazards asare customary in the area where the mortgaged property is located, and to the extentrequired by B/C as of the date of origination consistent with the Guides, against earthquakeand other risks insured against by persons operating like properties in the locality of themortgaged property, in an amount not less than the greatest of (i) 100% of the replacementcost of all improvements to the mortgaged property, (ii) the outstanding principal balance ofthe Mortgage Loan, or (iii) the amount necessary to avoid the operation of any co-insuranceprovisions with respect to the mortgaged property, and consistent with the amount thatwould have been required as of the date of origination in accordance with the Guides. If anyportion of the mortgaged property is in an area identified by any federal governmentalauthority as having special flood hazards, and flood insurance is available, a flood insurancepolicy meeting the current guidelines of the Federal Emergency Management Agency is ineffect with a generally acceptable insurance carrier, in an amount representing coverage notless than the least of (1) the outstanding principal balance of the Mortgage Loan (2) the fullinsurable value of the mortgaged property, and (3) the maximum amount of insuranceavailable under the National Flood Insurance Act of 1968, as amended by the Flood DisasterProtection Act of 1974. All such insurance policies (collectively, the “hazard insurancepolicy”) contain a standard mortgagee clause naming B/C, its successors and assigns(including, without limitation, subsequent owners of the Mortgage Loan), as mortgagee, andmay not be reduced, terminated or canceled without 30 days’ prior written notice to themortgagee. No such notice has been received by B/C. All premiums on such insurancepolicy have been paid. The related Mortgage obligates the borrower to maintain all suchinsurance and, at such borrower’s failure to do so, authorizes the mortgagee to maintainsuch insurance at the borrower’s cost and expense and to seek reimbursement thereforefrom such borrower. Where required by state law or regulation, the borrower has beengiven an opportunity to choose the carrier of the required hazard insurance, provided thepolicy is not a “master” or “blanket” hazard insurance policy covering a condominium, or anyhazard insurance policy covering the common facilities of a planned unit development. Thehazard insurance policy is the valid and binding obligation of the insurer and is in full forceand effect. B/C has not engaged in, and has no knowledge of the borrower’s havingengaged in, any act or omission which would impair the coverage of any such policy, thebenefits of the endorsement provided for herein, or the validity and binding effect of eitherincluding, without limitation, no unlawful fee, commission, kickback or other unlawfulcompensation or value of any kind has been or will be received, retained or realized by anyattorney, firm or other person, and no such unlawful items have been received, retained orrealized by B/C.(f) Environmental Compliance. There does not exist on the mortgagedproperty any hazardous substances, hazardous wastes or solid wastes, as such terms aredefined in the Comprehensive Environmental Response Compensation and Liability Act, theResource Conservation and Recovery Act of 1976, or other applicable federal, state or localenvironmental laws including, without limitation, asbestos, in each case in excess of thepermitted limits and allowances set forth in such environmental laws to the extent such lawsare applicable to the mortgaged property. There is no pending action or proceeding directlyinvolving the mortgaged property in which compliance with any environmental law, rule orregulation is an issue; there is no violation of any applicable environmental law (including,without limitation, asbestos), rule or regulation with respect to the mortgaged property; andnothing further remains to be done to satisfy in full all requirements of each such law, ruleor regulation constituting a prerequisite to use and enjoyment of said property.(g) Compliance with Applicable Laws. Any and all requirements of anyfederal, state or local law including, without limitation, usury, truth-in-lending, real estatesettlement procedures, consumer credit protection, equal credit opportunity or disclosurelaws applicable to the Mortgage Loan have been complied with, the consummation of theInitials:________ BC App Ver. 7.7 10/06/2014 Page 22